(Bloomberg) — The electric vehicles plant that Tesla Inc. will establish in Mexico will require around $5 billion in investment, a government official said, providing a first official estimate on the cost of the project.
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“We brought to Mexico an investment of around $5 billion for the installation of the largest electric vehicle plant in the world,” Deputy Foreign Minister Martha Delgado said in a video posted on Twitter late Tuesday. The investment “comes after 14 months of work,” she said, adding that “it’s not the only one we have with Tesla.”
The project, which will focus on smaller cars for the Mexican market and for export, will also generate about 6,000 jobs to produce about one million electric vehicles, Delgado told MVS radio on a separate interview. Delgado was traveling to Austin, Texas, to attend Tesla’s investor day on Wednesday, where the company is expected to provide details on the project.
Mexican President Andres Manuel Lopez Obrador earlier on Tuesday said Tesla will build the plant in Monterrey, in the Nuevo Leon state bordering Texas, ending weeks of speculation about its location but without offering further details.
AMLO, as the president is known, had expressed his preference for the plant to be built in the south of the country to avoid water scarcity problems that hit some of Mexico’s northern states. The president said he wrung environmental commitments from Tesla’s CEO Elon Musk on a phone call Monday, including using recycled water throughout the manufacturing process.
Read More: Tesla to Build in Northern Mexico After AMLO Speaks to Musk
(Updates with production, jobs estimates in third paragraph.)
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